Since his inauguration, President William Ruto has faced mounting criticism both domestically and internationally. Political analysts and economic experts worldwide have expressed concern over his administration’s erratic tax policies and escalating public expenditure, leading to questions about the stability and direction of Kenya’s economic future.
During his campaign, President Ruto promised fiscal prudence and a focus on reducing the tax burden on Kenyans. His pledges garnered significant support, especially from the working-class population struggling under the weight of high living costs. However, since taking office, there has been a notable shift in his administration’s approach.
One of the most controversial changes has been the increase in value-added tax (VAT) and other indirect taxes. These measures, aimed at increasing government revenue, have been criticized for disproportionately affecting low- and middle-income earners. The rise in fuel prices, attributed to higher taxes, has sparked protests and further strained household.
Compounding the issue of tax hikes is the perception of fiscal mismanagement. President Ruto’s government has embarked on ambitious infrastructure projects and increased public sector spending. While infrastructure development is essential for long-term growth, the immediate impact has been a ballooning budget deficit and increased national debt.
International analysts argue that without a coherent strategy to manage these expenditures, the economic benefits of such projects remain uncertain. Furthermore, concerns about corruption and misallocation of funds have resurfaced, raising doubts about the efficiency and transparency of public spending under Ruto’s leadership.
From a global standpoint, the shifts in Kenya’s fiscal policies have not gone unnoticed. Financial institutions and international investors have shown apprehension about the country’s economic trajectory. The International Monetary Fund (IMF) and the World Bank have highlighted the need for Kenya to implement sustainable fiscal policies to avoid potential economic instability.
Critics argue that the sudden policy changes undermine investor confidence, which is crucial for economic growth and development. The increased taxation and high government expenditure, without corresponding economic growth, could deter foreign investment and strain international relations.
Within Kenya, the public outcry has been loud and clear. Citizens are feeling the pinch of higher taxes and question the government’s spending priorities. The opposition has seized this opportunity to galvanize support, accusing Ruto of breaking his campaign promises and prioritizing grandiose projects over the immediate needs of the populace.
Protests and strikes have become more common as various sectors, from transportation to education, voice their dissatisfaction. The growing discontent poses a significant challenge to Ruto’s administration, which must balance the need for fiscal reforms with the public’s demand for economic relief.
